Yeah, for the crap Xbox got for just sticking with the same old UI and it not even being 4k, they got so many little things right over the PS5 so far it's crazy. Game saves working on almost every game regardless of what system you started it on, the correct version of a game downloading automatically , and only having to buy one version of a game most of the time.
I get why there are issues occasionally with stuff on the PS5 since Sony chose to have each version of a game be treated as if they were completely separate games. It's a pain, but the one plus is the new gen version on disc is a UHD, while every Xbox game is still on Blu-ray discs. If you are still at least mostly a physical copy only person, that's a fairly big deal as you can install a whole game most of the time (minus patches of course), while you have to download a decent portion of most games on Xbox.
Like you said, them still not making it really simple to install the correct version of a game is just plain dumb. The game saves issue is annoying, but I at least get it to an extent because of what I said in the above paragraph. The really dumb part is why some PS4 games don't allow you to transfer over the game save when there isn't a PS5 version available. Mass Effect Legendary Edition is the newest one I can think of that doesn't allow you to pick up where you left off if you start it on PS4 and then get a PS5. Unlike what it shows on Xbox, there is no new gen version of the game on PlayStation (and it's not really one on Xbox either despite the case and the system saying otherwise).
So, I guess to end this longer than expected post, I actually do think the Series X is the better overall system of the two. That is from design and UI perspective. Obviously Sony still wins out in the games department for now (things could get real interesting in a year or two), and that's what drove me back to getting another PS5 yesterday even though I've highly enjoyed my time with my Series X. I was sick of watching people play Ratchet & Clank and Final Fantasy 7 Remake on their PS5s and me not being able to since I sold mine.
Try installing a physical Xbox One game from Disc & try playing that on Xbox Series X without internet.